A couple of years back MP3 was the most supported format for portable devices. Then Apple came along and wiped the floor of all the portable devices with the iPod as well as the iPhone. They clearly favour M4A (AAC).
When to choose, right now, the 'best' audio codec to encode music to, which would you choose to achieve maximal independence of portable device vendors: MP3 or M4A?
(I am well aware of Ogg (Vorbis): no market (maybe this changes with HTML5 and more WebKit on portable devices), I am also aware of FLAC: I don't want to discuss long term storage.)
Answer
If you plan to use your audio files on more than one portable player, especially if you want to use them on future players that you haven't bought yet (so you don't know what formats they will support), MP3 is more or less your only option. Even for players with support for other formats, that support is often incomplete and buggy.
Unless you make sure to only buy Rockbox-compatible players. Then you can use pretty much any format you like.
Of course, the only truly future-proof solution is keeping lossless copies of everything and transcoding to lossy formats for mobile players.
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